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Cost of Sales
 12 Months Ended
Dec. 31, 2025
Cost Of Sales  
Cost of Sales

Note 8 – Cost of Sales

 

Cost of Sales is accounted for in accordance with ASC 705 – Cost of Sales and Services. The Company purchases all commercial inventory as finished pharmaceutical products from third party suppliers and does not conduct internal manufacturing.

 

These costs are capitalized into inventory in accordance with ASC 330 and recognized in Cost of Sales when control of the related inventory transfers to the customer under ASC 606. Inventory is recorded at cost.

 

The Company evaluates inventory for excess, expiration, and obsolescence at each reporting period. Inventory that becomes unsalable due to shelf-life limitations, regulatory changes, product discontinuation, or forecasted demand shortfalls is written down to its net realizable value, with the charge recorded in Cost of Sales. Previously recorded write downs are not reversed.

 

The Company’s Cost of Sales category is comprised of the following:

Schedule of cost of sales          
Year Ended December 31,  2025   2024 
Finished goods  $8,866,208   $8,116,534 
Professional allowances   11,909,812    13,714,009 
Other allowances   1,086,575    666,913 
Wholesalers’ fees & discounts   650,333    1,699,286 
Inventory adjustment   1,162,303    236,555 
Freight   374,983    438,105 
Total  $24,050,214   $24,204,489